In Part 1, I laid out nfx’s 16 network effects. Which is a pretty useable framework. And I agree with about half of them (which is pretty high for me). In Part 2, I want to lay out how I take apart network effects. And it starts with rejecting the graphic below on the left. […]
I recently did a podcast on nfx list of 16 Network Effects. NFX’s 16 Network Effects. Plus, Embedding and Other Small Digital Ideas (Tech Strategy – Podcast 158) James Currier and his venture capital firm nfx really do go into a lot of detail about network effects as an idea. It’s worth reading his Network […]
Network effects are a powerful force in the digital world. They can help businesses to grow quickly and to become dominant players in their markets. However, network effects are not the only factor that is important for success in the digital world. Businesses also need to focus on growth and unit economics.
Network effects are a powerful force in the digital world. They can help businesses to grow quickly and to become dominant players in their markets. However, network effects are not the only factor that is important for success in the digital world. Businesses also need to focus on growth and unit economics.
Ok. Let me see if I can impress you today. In Part 1, I wrote about ANE Logistics, an interesting Chinese company. But I really wanted to make a few points about the nature of logistics and physical networks: There is a difference between networks, platform business models and network effects. Physical networks are different […]
In this podcast, Jeffrey Towson discusses the challenges of building network effects in complicated services, such as freight and cargo. He explores the different types of network effects, the factors that impact their growth, and the strategies that companies can use to succeed in these markets. For example, he discusses how companies can use on-demand pricing to match supply and demand, and how they can use route-specific network effects to balance supply and demand on each route.
In this podcast, Jeffrey Towson discusses the three types of network effects: direct, indirect, and standardization and interoperability. He explores how these different types of network effects can create value for businesses and consumers, and he discusses the challenges that businesses face in building and maintaining network effects. For example, he discusses how businesses need to invest in marketing and advertising to attract users, and how they need to keep users engaged with their products and services.
In this podcast, Jeffrey Towson discusses the three types of network effects: direct, indirect, and standardization and interoperability. He explores how these different types of network effects can create value for businesses and consumers, and he discusses the challenges that businesses face in building and maintaining network effects. For example, he discusses how businesses need to invest in marketing and advertising to attract users, and how they need to keep users engaged with their products and services.
Network effects are the brass ring of the digital age. Companies and investors, especially venture capitalists, are actively reaching for them. And, like platform business models, they can have multiple important effects. Creating surprisingly durable competitive advantages is one of them. First some general comments and then I’ll go into three types of network effects. […]
In this podcast, Jeffrey Towson discusses the three effects of network effects, and how they can be used to create a competitive advantage. He also talks about So-Young, a Chinese marketplace for beauty services, and how it is using network effects to grow its business.